Which of the Following Best Describes the Philosophy of Functional

question 24

Multiple Choice

Which of the following best describes the philosophy of functional finance?

• A)The federal budget should be balanced each year.
• B)A federal budget deficit should be permitted only during a business expansion.
• C)A federal budget deficit should be permitted only during a recession.
• D)Policy makers should focus on keeping the unemployment rate at the natural rate,even if this means budget deficits.
• E)Policy makers should be less concerned about budget deficits and more concerned with increasing the natural rate of unemployment.

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Definitions:

Independence

The state of being self-reliant and not dependent on others for decision-making or support.

Object Permanence

The acknowledgment that objects keep their presence, unaffected by their immediate invisibility or inaudibility to human senses.

Self-reliant

The ability to rely on one's own capabilities, resources, and judgments to meet one's needs without external assistance.

Insecurely Attached

A term from attachment theory describing individuals who have difficulties forming healthy emotional bonds and tend to have trust issues in relationships.